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US: Bigger corn supply this fall should ease concerns of a shortage and slow food inflation
ST. LOUIS (AP) ' Corn supplies are projected to be higher than expected this fall. A bigger crop would ease concerns of a grain shortage and could slow food inflation later this year.
The U.S. Agriculture Department says 880 million bushels of corn will be left over when the harvest begins. That's an increase from the previous estimate of 730 million acres (295 million hectares). Farmers planted the second biggest corn crop this year since World War II.
News of the big corn crop brought down global corn prices 20 percent over the last month. That means food inflation will likely slow in 2012, because it takes about six months for ingredient prices to be passed on from food processors to the grocery aisle.
A bushel of corn equals 25.4 kilograms (56 pounds).